Q3 2021

Camino Financial’s quarterly analysis points to emerging credit demand among smaller Latino-Owned Businesses (LOBs) with the intention to invest in digitalization, but traditional credit evaluation tools inhibit their access to capital.

Lower-revenue LOBs intend to grow quickly

Application data shows that LOBs earning over $500K fell by 20% in the last quarter while microbusiness applications remained steady.

chart

LOBs earning over $500K fell by 20% in the last quarter

Member Sentiment Survey1 responses indicate a clear desire to expand:

chart

26% of LOBs reporting that they’ve started offering different products and services

chart

51% of LOBs stating they plan to do the same in the next quarter

Camino Financial
Camino Financial

Lower-revenue LOBs are digitalizing to drive growth

LOBs maintain a positive outlook when it comes to digital adoption, enabling them to reach new customers, digest data and arrive at decisions faster, and at lower costs.

IN THE NEXT THREE MONTHS MEMBERS SURVEYED:

chart

THE TREND TOWARDS DIGITALIZATION:

chart

Lack of access to capital impedes conversion to digital

The LOB optimism and digitalization mentioned above needs funding, which LOBs are not getting commensurate with their needs.

chart

53% of LOBs stated that lack of access to capital is their biggest challenge

Camino Financial
Camino Financial

Alternative scoring models close the capital gap for LOBs

This resulted in more capital in the hands of more LOBs that need it most. For borrowers who did have a pre-existing traditional credit score, we were able to offer them better, less burdensome terms, freeing up more capital for growth.

chart

39% of LOBs in Q3’21 didn’t have a traditional credit score, but we were able to assign reliable risk to about ¾ of them using our proprietary CaminoScore technology

View past quarters

Q2 2021

Summary:
Camino Financial’s quarterly analysis points to emerging credit demand among smaller Latino-Owned Businesses (LOBs) with the intention to invest in digitalization.

Q1 2021

Summary:
This quarterly issue follows the impact of COVID-19 on Latino-Owned Businesses (“LOBs”) after the resurgence of the virus and reclosure of the economy between June and August 2020.